The present invention relates to an interactive communications system, and more particularly, to an interactive remote auction bidding system allowing a plurality of bidders to participate in an auction on a real-time basis from multiple remote locations.
Remarketing surplus products is a challenge for manufacturers and dealers in many industries, and in particular the equipment industry. Stale new inventory and xe2x80x9cslightly usedxe2x80x9d product competes for customers with goods direct from the assembly lines. Equipment ownership and usage patterns have changed and continue to change. Whereas most new product was once sold to end users, now many industry segments deliver more than 65% of new product to xe2x80x9cRental/Lease Fleetsxe2x80x9d. Equipment sold is often guaranteed for it""s future value. Customers have transferred many elements of ownership risk to manufacturers and dealers by forcing sellers to provide rentals, leases, or future value guarantees. Consumer preference to rent is driven by a composite of factors including tighter lending standards, lack of tax incentives, increasing complexity and specialization of equipment, volatility of equipment values within their industries and increasing availability and competitiveness of short term equipment rental solutions. Rentals, long term leases and xe2x80x9cbuy backxe2x80x9d agreements provide customers use of equipment without the ownership obligations or liabilities. Manufacturers and Dealers remain xe2x80x9cat riskxe2x80x9d and responsible for rental, lease and xe2x80x9cbuy backxe2x80x9d equipment until it""s ultimate sale. In view of these marketing techniques, as well as improvements in the useful life of a product, the burden or remarketing more of these products after their first substantial use remains with manufacturers, dealers and other rental operators. In many cases, the most severe competition for new sales is generated by identical xe2x80x9cused productxe2x80x9d rather than by new product of competitive manufacturers.
Manufacturers and dealers have achieved success generating sales of new products, but typically have less success remarketing used equipment and transferring ownership obligations to end users. xe2x80x9cAfter marketxe2x80x9d remarketing specialists such as brokers, traders, import-export entrepreneurs and retail auctioneers provide needed expertise for second and subsequent sales of equipment. These remarketing specialists sell in direct competition to new products sold by dealers and manufacturers.
Due to the diverse demographics of their markets, and fractured communication among dealers, dealers"" effectiveness is limited to small geographic areas in proximity to their dealership. Dealers have limited knowledge or success trading outside local trading areas. Manufacturers encourage xe2x80x9clocalxe2x80x9d market focus. Whereas xe2x80x9clocalxe2x80x9d focus for new equipment may be effective, remarketing surplus equipment locally limits potential and is largely an ineffective and costly strategy. At the same time, effort expended, travel costs, language, currency, cultural and information barriers plus lack of critical mass in any single market make venturing beyond local trade areas expensive, risky, inefficient, and often counterproductive for dealers. Accordingly, remarketing used equipment has been inefficient.
Conventionally, auctions of used equipment or the like require that the equipment be brought to the auction site and presented by the seller where the auction takes place. Additionally, all participants to the auction must assemble at the auction site. Such an auction therefore is typically limited to regional geographic areas due to the costs of assembling equipment as well as participants. Scale is crucial to auction success. Scale attracts buyers. The more buyers the better the result. The more specialized the product, the greater the distance both buyer and product must travel for the auction to achieve scale or critical mass. Freight on large equipment is expensive, and moving equipment to an auction site, and then removing the same equipment, if not sold, produces an inefficient non-value added expense. These expenses are further incurred by buyers traveling to auctions.
A need has thus arisen for a xe2x80x9creal-timexe2x80x9d auction information processing system which enables individuals dispersed over a wide geographic area to participate in an auction without gathering at the auction site. A need has further arisen for a system to allow individuals to participate in an auction without requiring a large investment in a technical infrastructure at the buyers""/bidders"" remote locations.
In accordance with the present invention, an interactive remote auction bidding system for conducting an auction among participants located at remote locations from the auction site is provided. Each of the participants at a remote location utilizes a data input device for communication over a network to the auction site. The system includes a data processor located at the auction site for generating bid information for communication over the network to the remote locations. A processor located at the auction site monitors the participants"" data input devices for sensing participant bids generated by the participants"" data input devices. The system further displays bid information at the auction site for transmission over the network to the participants.